SEC Abbreviation for the Securities and Exchange Commission that is responsible for the stock exchange supervision in the USA.
Secret reserves Secret reserves of a company are the result of an undervaluation of assets or an overvaluation of liabilities in the balance sheet.
Share A vested right in a public limited company following the acquisition of a share in the share capital. Shares are classified as bearer shares or registered shares (§10 of the German Company Law). The participation in the share capital is effected by issuing par value shares or no par value shares with an arithmetical equity in the share capital. Another difference is made between voting shares and non-voting shares. Shares of the same type produce a class of shares (§11 of the German Company Law). Shares of public limited companies listed on the stock exchange can be traded via banks in the following market segments: unofficial market, regulated market, official trading as well as the Neuer Markt.
Share analysis Inclusion of all factors influencing the market-relevant rating of shares. Basically, there are two different types of share analyses:
- Fundamental analysis:
making use of company-related factors influencing the share rating
- Technical analysis:
making use of graphically presented developments in the share prices and indices
The aim of the share analysis is to reduce the risks with respect to the selection, timing and portfolio compilation in the share trading business.
Share capital Share capital of a public limited company that is equivalent to the nominal value or the arithmetical equity of all off the issued shares. In the balance sheet, it is shown as subscribed share capital on the liabilities side.
Share price The share price quoted on the stock exchange is the result of supply and demand. It is expressed in currencies (e.g. Euro, US dollar) per share. The spot price is the price at which the largest volume is traded.
Shareholders’ equity All funds that are used by the shareholders of a company for its financing or that have been left in the company as an achieved profit. The shareholders’ equity consists of:
subscribed share capital + capital reserves + profit reserves + profit / loss carried forward + profit / loss for the financial year.
Shareholders' meeting The shareholders' meeting is the decision-making organ of a public limited company. The tasks of the shareholders' meeting include: appointing the members of the Supervisory Board, except for the workers' representatives; making decisions on the use of the net profit for the year; accepting the reports of the Managing Board and the Supervisory Board; appointing the auditors, making decisions on fund raising and reduction as well as the judicial dissolution of a public limited company.
Standard price Price at which the largest volume has been traded at the stock exchange. Also called spot price. It is established for all securities admitted for trading at the stock exchange once a market day. So-called variable prices are established several times during the official trading hours for securities with a high turnover.
Stock exchange The meeting place of supply and demand, mostly for securities but also for other economic goods. The trading in securities is effected at certain times in certain places or through an electronic trading system. The eight German stock exchanges and the electronic Xetra trading system are subject to state supervision. Decisions on the admission of shares for dealings on the stock exchange are made by the stock exchange’s board controlling the admission of securities. Only representatives of financial institutions, official or free-lance stockbrokers are admitted to stock exchanges to trade in shares and securities.
Stock exchange capitalisation (market capitalisation) The market value of a company listed on the stock exchange; also called market capitalisation). The stock exchange capitalisation is calculated from the number of shares of a company multiplied by the current share price.
Stock option plan
Participation model, that normally offers the management of a company the option to buy shares of a company at certain conditions. The Managing Board of HeidelbergCement had this instrument of compensation for services be approved during the Shareholders' Meeting on 19th June 2001 for approximately 500 managers of the Group. Several performance criteria have to be fulfilled prior to the redemption of the issued options.
Supervisory Board
The Supervisory Board is the supervising organ of a public limited company. It appoints and gives advice to the members of the Managing Board. Except for the workers’ representatives, the members of the Supervisory Board are elected by the Shareholders’ Meeting. In accordance with the German Codetermination Law of 4th May 1976, the Supervisory Board of companies with more than 20,000 employees consists of 10 workers’ and 10 shareholders’ representatives. One third of the members of the Supervisory Board have to be employees of the company. The Supervisory Board has to call at least one meeting in six months.